amount of revenue to be recognized by the seller
Q: On July 1, 2021, Concord Inc. entered into a contract to deliver one of its specialty machines to…
A: Contract Entered for Purchase of Machine: Equipment Purchase Agreement means an agreement between…
Q: Oriole Company sells goods that cost $290,000 to William Company for $445,000 on January 2, 2023.…
A: The objective of this question is to determine when and how much revenue Oriole Company would…
Q: Sage Hill Inc., a registered broker, enters into a finder's fee agreement with HOM Homes Ltd. on…
A: A journal entry is a method of recording financial transactions in the book of the original entry by…
Q: unland Company sells goods that cost $300,000 to Marigold Company for $400,000 on January 2, 2020.…
A:
Q: On May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on…
A: As per IFRS 15 "Revenue from contracts with customers" The cash received in advance will be…
Q: Entity A is a manufacturer of consumer goods. On 1 January 2020, Entity A entered into a one-year…
A: note: The answer has been prepared with the assumption that the amounts are not received and only…
Q: On May 1, 2025, Oriole Company enters into a contract to transfer a product to George Company on…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Sim STar Ltd is a telecommunications provider. On 1 January 2020, the company entered into a…
A: Definition: Revenue recognition as per IFRS 115 revenue of contracts with customers mandates that if…
Q: On May 1, 2020, Marin Inc. entered into a contract to deliver one of its specialty mowers to…
A: DATE PARTICULARS DEBIT CREDIT a) May 1, 2020 No entry is required as a contract was…
Q: On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is…
A: COGS is starting inventory and purchases throughout the amount, minus your ending inventory. You may…
Q: On May 10, 2020, Vaughn Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: A company sells equipment to customers for $491,000 on January 1st, 2021. The sales price includes…
A: Unearned Service Revenue is a liability account that is used to record advanced collections from…
Q: 1. A company enters into a contract with a customer to sell Products AA, Baba, and Kaka in exchange…
A: Transaction price of a contract will allocate in the ratio of observable standalone price of all…
Q: On May 1, 2023, White Inc. entered into a contract to deliver one of its specialty mowers to Blossom…
A: As per revenue recognition concept, revenue should only be recognised when these are earned. Receipt…
Q: On May 1, 2025, Hall Inc. entered into a contract to deliver one of its specialty mowers to Sandhill…
A: ON MAY 1 , 2025 BOTH THE PARTIES ENTERED INTO THE CONTRACT.
Q: On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a…
A: The business organizations enter the transactions into the journal for the purpose of keeping track…
Q: TPPG Ltd is a telecommunications provider. On 1 January 2020, the company entered into a contract to…
A: a. Accordingly, the company is providing a 2 year contract to sell both the handset and the mobile…
Q: On May 1, 2020, Tamarisk Inc. entered into a contract to deliver one of its specialty mowers to…
A: Preparation of Journal Entries Here the situation is a contract agreement between Kickapoo…
Q: On May 10, 2020, Splish Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: On November 1, 2021 a customer enters into a contract with MyWatch, Inc. to purchase an eWatch plus…
A: The Accrual basis accounting states that revenue should be recognized as and when the service or…
Q: BC Company requires refundable advance payments with special orders for machinery constructed to…
A: Liabilities exists in the form of loans, accounts payable, mortgages, deferred revenues etc. Current…
Q: In 20x1, Devin Co. enters into a contract to construct a building for a customer. Devin Co.…
A: Comment; We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: On May 10, 2020, Marigold Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: The primary reporting of transactions in the books of accounts can be made by recording journal…
Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…
A: Journal entry record the financial transactions. In case money is received in advance, it is…
Q: On October 1, 2021, Richardson Inc. entered into a contract to deliver one of its specialty…
A: ASC 606 is a revenue recognition standard that affects all business that enter into contracts with…
Q: Required: Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of…
A: As per IFRS, if the payments, regarding the sale of goods, are received in installments over the…
Q: On November 1, 2021, Sunland Farm entered into a contract to buy a $144000 harvester from John…
A: Unearned revenue is recognized as a liability, It is the amount of cash for which goods or services…
Q: On July 1, 2021, Blossom Inc. entered into a contract to deliver one of its specialty machines to…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Company Zumba delivers goods to Customer Yuppie on 1 January 2018. The agreement between the two…
A:
Q: Carla Vista Inc., a registered broker, enters into a finder's fee agreement with Wildhorse Homes…
A: Journal Entry:It is a book in which all the transactions of a business are recorded for the first…
Q: On January 1, Nathan Company enters into a contract to provide custom-made equipment to Cushing…
A: Solution 1 The above question is related to revenue recognized concept. In above case the business…
Q: On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the…
A: Given: Package = P 1,000,000 Stand Alone Prices Merchandise 900,000Invoice Printer 55,000Shop Neon…
Q: An agent sells tickets for airlines to customers. In 2021, The total price the customers pay to the…
A: Revenue recognized in 2021 = Total amount received from the customers - Amount paid to the airlines
Q: On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…
A: Date Particulars Debit Credit May 1, 2020 No entry May 15, 2020 Cash $889 Unearned…
Q: On November 1, 2024, Wildhorse Farm entered into a contract to buy a $159000 harvester from John…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: On January 1, SaLow Company enters into a contract to provide custom-made equipment to ByHi…
A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…
Q: According to the ideas behind the revenue recognition standard of the FASB, when a seller enters…
A: The correct answer is: When the seller satisfies a performance obligation to the…
Q: On January 1, 2020, ABC enters into a contract with a customer to transfer a license for a fixed fee…
A:
Q: Klope sells major household appliance service contracts for cash. The service contracts are for…
A: The question is based on the concept of Financial Accounting.
Q: On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is…
A: Revenue recognition principle says that revenues of an organisation should be recognised only when…
Q: Company A provides a bundled service offering to Customer B. It charges Customer B $800,000 for…
A: There was a five step model framework to recognize revenue from contracts 1. Identify the contract…
Q: November 15, 2021 Fields Sales Company entered into a contract to sell footballs for $20,000 to…
A: Under accrual basis accounting, the revenue and expenses are recognised and recorded as and when…
On April 1, 2021, the seller enters into a contract to deliver products to the
customer on May 31, 2021. The customer agrees to pay the full contract price of P10,000 on June 15, 2021. The cost of the goods is P7,000. The seller delivers the products to the customer on May 31, 2021 and receives payment on June 15, 2021. Determine the amount of revenue to be recognized by the seller on June 15, 2021.
Step by step
Solved in 3 steps
- On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,980 on July 15, 2020. The cost of the goods is $1,280. Cullumber delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs.On May 10, 2025, Cullumber Co. enters into a contract to deliver a product to Oriole Inc. on June 15, 2025. Oriole agrees to pay the full contract price of $1,980 on July 15, 2025. The cost of the goods is $1,280. Cullumber delivers the product to Oriole on June 15, 2025, and receives payment on July 15, 2025. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SIOn May 10, 2020, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,000 on July 15, 2020. The cost of the goods is $1,300. Cosmo delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cosmo related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
- On May 10, 2020, Vaughn Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,380. Vaughn delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Vaughn related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)On May 10, 2020, Splish Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,080 on July 15, 2020. The cost of the goods is $1,330. Splish delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Splish related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record contract entered into enter a debit amount enter a credit amount enter an account title to record contract entered into enter a debit amount…On May 10, 2020, Marigold Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,890 on July 15, 2020. The cost of the goods is $1,170. Marigold delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Marigold related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date May 10, 2020Jun. 15, 2020Jul. 15, 2020 enter an account title to record contract entered into enter a debit amount enter a credit amount enter an account title to record…
- On November 1, 2021, Sunland Farm entered into a contract to buy a $144000 harvester from John Deere. The contract required Sunland Farm to pay $144000 in advance on November 1, 2021. The harvester (cost of $104000) was delivered on November 30, 2021. The journal entry to record the contract on November 1, 2021 includes a credit to Sales Revenue for $144000. debit to Unearned Sales Revenue for $144000. credit to Unearned Sales Revenue for $144000. credit to Accounts Receivable for $144000.On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $105,000 in advance on October 9, 2020. The customer pays on October 9, 2020, and company delivers the product on October 19, 2020. The company should make the journal entry to record cost of goods sold on which date of October: _______ (enter the date only).On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $50,000 in advance on October 10, 2020. The customer pays on October 10, 2020, and company delivers the product on October 26, 2020. When will the (seller) company make its first journal entry related to the above? Choose from 5, 10, and 26, and enter the date only.
- On March 1, 2023, Sandhill Company enters into a contract to sell a product to Anthony Hall on July 31, 2023. The contract is structured such that Anthony Hall is required to pay the full contract price of $5,040 on August 31, 2023. The cost of goods transferred is $3,580. Sandhill delivers the product to Anthony Hall on July 31, 2023. What journal entries should Sandhill make regarding this contract in 2023? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List a debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sale on account) (To record cost of goods sold) Debit CreditOn May 10, 2020, Sweet Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,120 on July 15, 2020. The cost of the goods is $1,490. Sweet delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Sweet related to this contract. Either party may terminate the contract without compensation until one of the parties performs.Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on May 10, 2019. Cass manufactured the goods at a cost of $33,000. The contract is signed on April 15, 2019, at which time Dearborn pays Cass $25,000. Cass delivers the goods on May 10, 2019, and Dearborn pays the final $25,000 on that date. Required: 1. On what date does a contract exist between Cass and Dearborn? 2. What are Cass’s performance obligations in the contract? 3. What is the transaction price? 4. Does this transaction price need to be allocated? 5. Prepare Cass’s journal entries related to the contract with Dearborn.